very vendor selling a property needs to prove that they are a resident of Australia for tax purposes unless they are happy for the purchaser to withhold a 12.5% withholding tax. From 1 July 2017, every individual selling a property with a sale value of $750,000 or more is affected.

While these rules have been in place since 1 July 2016, on 1 July 2017 the threshold for properties reduced from $2 million to $750,000 and the withholding tax level increased from 10% to 12.5%

The intent of the foreign resident CGT withholding rules is to ensure that tax is collected on the sale of taxable Australian property by foreign residents. But, the mechanism for collecting the tax affects everyone regardless of their residency status.

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The difference between an employee and an independent contractor has been an issue causing much confusion amongst small business for a long time.

Some of the more common industries we find that are caught up in this confusion include building and construction, cleaning, road transport, engineering and information technology industry (IT).

The Australian Taxation Office has been on the record saying while most business try to do the right thing, some deliberately treat their employees as contractors to illegally lower their labour costs by not withholding tax or paying the superannuation guarantee.

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